The real estate crash that helped drag the nation’s economy into the gutter was particularly painful for metro Phoenix — but why? Local experts Mark Stapp and Jack Tomasik published a report this month that offers insight into past mistakes and how some self-reflection could put the Valley’s long-term real estate future on a better track.

The duo says the bust was a symptom of a local economy far too reliant on construction and overrun by developers and investors who were focused on making a quick buck rather than projects that were well-suited for the area long term. That reality has led to four areas of criticism: The Valley is not walkable and not sustainable, it has too few well-paying jobs, and its sprawling suburbs don’t have enough employment centers.

“This time there is a more widespread loss of faith in development,” said Tomasik, an economic and community development consultant at Chandler-based Economic Strategies Group. “Construction and development alone cannot be our economic base. It was just too easy … like we were hooked on this stuff.”

of Business, say it’s time for the Valley to shift away from a transaction-focused economy to a transformative one. That means creating an identity or brand for the Valley and building smart, sustainable communities around that identity.

“The advantage of being place-making focused rather than transaction-focused is that you get to control the environment. You get to create the attractiveness,” Stapp said. “The question is, what is ‘attractive’? What is our brand, our differentiator, as a place competing with other places to operate a business and live? How will we adapt to and capture value from changing demographics, rapidly evolving technology and shifting values? Together, these are disruptive to the norm.”

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